Purchase to Make Lilly's Elanco the Second-Biggest Company in Animal Drugs Behind Zoetis

Eli Lilly & Co. is making a bet on rising global demand for animal drugs and vaccines with a deal to acquire Novartis AG's animal-health business for $5.4 billion.

Lilly said the purchase would make its Elanco unit the second-biggest animal-health company by global revenue, behind Zoetis Inc., the company spun out by Pfizer Inc. last year. Previously, Lilly ranked No. 4 and Novartis was No. 7.